Anonymous
02/20/2019 16:34
Subject: MD Taxes and SALT
Anonymous wrote:I do my taxes with freetaxusa and made a second account to put my 2017 information in as if it was 2018 (and thus under the new tax law).
Comparing the returns, the new tax law reduced our federal tax burden by ~$1,750. But, this is entirely due to us now qualifying for the $2,000 child tax credit. If we didn't have a child our tax burden would have been ~$250 higher.
What is your ballpark AGI?
This seems like the result most people will get to around 150K.
Anonymous
02/20/2019 16:33
Subject: MD Taxes and SALT
Anonymous wrote:Anonymous wrote:Anonymous wrote:Anonymous wrote:Anonymous wrote:Anonymous wrote:Anonymous wrote:Keep in mind that in 2017 the standard deduction for MFJ was $12K vs 2018 at $24K. So you aren't really losing "$10k" in SALT
Why do people keep forgetting that we also lost the personal exemptions?
True but most people come out ahead with the $2K child credit (a credit and not a deduction which is more powerful at lower incomes).
But my 18 year old dependent does not qualify for the credit...
because the party of family values believes that once you turn 18, that's it, you should be on your own. Something about bootstraps.
I think you lose it at 17...to be precise...I guess you are suppose to be on your own before graduating from high school.
Seriously! I don't get a tax credit for my 17-year old junior in high school. So the $2000 tax credit did not make up for the lost in exemptions. Plus we lost $2K in itemized deductions due to SALT. Our effective tax rate went up.
If you only lost $2k in deduction it is hard to imagine your tax rate really went up from last year. At that level the reduction in rates and elimination of marriage penalty more than makes up for it. The only other explanation might be that your income went up from last year. I would double check your taxes if you haven't filed.
Anonymous
02/20/2019 16:01
Subject: MD Taxes and SALT
I do my taxes with freetaxusa and made a second account to put my 2017 information in as if it was 2018 (and thus under the new tax law).
Comparing the returns, the new tax law reduced our federal tax burden by ~$1,750. But, this is entirely due to us now qualifying for the $2,000 child tax credit. If we didn't have a child our tax burden would have been ~$250 higher.
Comparing the returns, the new tax law reduced our federal tax burden by ~$1,750. But, this is entirely due to us now qualifying for the $2,000 child tax credit. If we didn't have a child our tax burden would have been ~$250 higher.
Anonymous
02/20/2019 14:51
Subject: MD Taxes and SALT
We are paying a few thousand more due to the loss of SALT. Our AGI is 150k.
Anonymous
02/20/2019 14:25
Subject: MD Taxes and SALT
Poster above. We did get a $500 credit for my high school junior but the $2500 did not make up for the lost exemptions and lost itemizations even with the lower tax rate.
Anonymous
02/20/2019 14:05
Subject: MD Taxes and SALT
Anonymous wrote:Anonymous wrote:Anonymous wrote:Anonymous wrote:Anonymous wrote:Anonymous wrote:Keep in mind that in 2017 the standard deduction for MFJ was $12K vs 2018 at $24K. So you aren't really losing "$10k" in SALT
Why do people keep forgetting that we also lost the personal exemptions?
True but most people come out ahead with the $2K child credit (a credit and not a deduction which is more powerful at lower incomes).
But my 18 year old dependent does not qualify for the credit...
because the party of family values believes that once you turn 18, that's it, you should be on your own. Something about bootstraps.
I think you lose it at 17...to be precise...I guess you are suppose to be on your own before graduating from high school.
Seriously! I don't get a tax credit for my 17-year old junior in high school. So the $2000 tax credit did not make up for the lost in exemptions. Plus we lost $2K in itemized deductions due to SALT. Our effective tax rate went up.
Anonymous
02/20/2019 13:43
Subject: MD Taxes and SALT
Anonymous wrote:Anonymous wrote:Anonymous wrote:Anonymous wrote:Anonymous wrote:Anonymous wrote:Keep in mind that in 2017 the standard deduction for MFJ was $12K vs 2018 at $24K. So you aren't really losing "$10k" in SALT
Why do people keep forgetting that we also lost the personal exemptions?
True but most people come out ahead with the $2K child credit (a credit and not a deduction which is more powerful at lower incomes).
But my 18 year old dependent does not qualify for the credit...
because the party of family values believes that once you turn 18, that's it, you should be on your own. Something about bootstraps.
I think you lose it at 17...to be precise...I guess you are suppose to be on your own before graduating from high school.
There is now a $500 (non-refundable) credit available for each non-child dependent.
Anonymous
02/20/2019 13:33
Subject: MD Taxes and SALT
Anonymous wrote:Anonymous wrote:Anonymous wrote:Anonymous wrote:Anonymous wrote:Keep in mind that in 2017 the standard deduction for MFJ was $12K vs 2018 at $24K. So you aren't really losing "$10k" in SALT
Why do people keep forgetting that we also lost the personal exemptions?
True but most people come out ahead with the $2K child credit (a credit and not a deduction which is more powerful at lower incomes).
But my 18 year old dependent does not qualify for the credit...
because the party of family values believes that once you turn 18, that's it, you should be on your own. Something about bootstraps.
I think you lose it at 17...to be precise...I guess you are suppose to be on your own before graduating from high school.
Anonymous
02/20/2019 13:32
Subject: MD Taxes and SALT
By the posting you see on here, it seems like almost everyone is making 500K+
Anonymous
02/20/2019 13:31
Subject: MD Taxes and SALT
Anonymous wrote:Anonymous wrote:Anonymous wrote:Anonymous wrote:Keep in mind that in 2017 the standard deduction for MFJ was $12K vs 2018 at $24K. So you aren't really losing "$10k" in SALT
Why do people keep forgetting that we also lost the personal exemptions?
True but most people come out ahead with the $2K child credit (a credit and not a deduction which is more powerful at lower incomes).
But my 18 year old dependent does not qualify for the credit...
because the party of family values believes that once you turn 18, that's it, you should be on your own. Something about bootstraps.
Anonymous
02/20/2019 13:30
Subject: MD Taxes and SALT
Anonymous wrote:Anonymous wrote:Anonymous wrote:Anonymous wrote:Anonymous wrote:Keep in mind that in 2017 the standard deduction for MFJ was $12K vs 2018 at $24K. So you aren't really losing "$10k" in SALT
Why do people keep forgetting that we also lost the personal exemptions?
True but most people come out ahead with the $2K child credit (a credit and not a deduction which is more powerful at lower incomes).
But *most* people who used to use the itemized deduction due to high SALT have higher taxes even with the child tax credit, which if you are a dink, you don't get. But you would've gotten the personal exemption.
You don't really know till you have done your taxes. If you had high SALT but paid AMT last year (as AMT limits SALT), you will generally be no worse off this year or at least within spitting distance.
There is a zone between 150K-200K who would have been just short of AMT last year and now have you SALT limited.
I'm going to guess that there are more people making between $150k to 200K than there are those who are making > $200K and had amt in previous years.
Anonymous
02/20/2019 13:29
Subject: MD Taxes and SALT
Anonymous wrote:Anonymous wrote:Anonymous wrote:Anonymous wrote:Keep in mind that in 2017 the standard deduction for MFJ was $12K vs 2018 at $24K. So you aren't really losing "$10k" in SALT
Why do people keep forgetting that we also lost the personal exemptions?
True but most people come out ahead with the $2K child credit (a credit and not a deduction which is more powerful at lower incomes).
But my 18 year old dependent does not qualify for the credit...
sounds like good tax policy.
Anonymous
02/20/2019 13:29
Subject: MD Taxes and SALT
Anonymous wrote:Anonymous wrote:Anonymous wrote:Anonymous wrote:Keep in mind that in 2017 the standard deduction for MFJ was $12K vs 2018 at $24K. So you aren't really losing "$10k" in SALT
Why do people keep forgetting that we also lost the personal exemptions?
True but most people come out ahead with the $2K child credit (a credit and not a deduction which is more powerful at lower incomes).
But my 18 year old dependent does not qualify for the credit...
but he did for personal exemption, which is why for many people, the loss of this is a double whammy.
Anonymous
02/20/2019 13:27
Subject: MD Taxes and SALT
Anonymous wrote:Anonymous wrote:Anonymous wrote:Keep in mind that in 2017 the standard deduction for MFJ was $12K vs 2018 at $24K. So you aren't really losing "$10k" in SALT
Why do people keep forgetting that we also lost the personal exemptions?
True but most people come out ahead with the $2K child credit (a credit and not a deduction which is more powerful at lower incomes).
But my 18 year old dependent does not qualify for the credit...
Anonymous
02/20/2019 13:23
Subject: MD Taxes and SALT
Anonymous wrote:Anonymous wrote:Anonymous wrote:Anonymous wrote:Keep in mind that in 2017 the standard deduction for MFJ was $12K vs 2018 at $24K. So you aren't really losing "$10k" in SALT
Why do people keep forgetting that we also lost the personal exemptions?
True but most people come out ahead with the $2K child credit (a credit and not a deduction which is more powerful at lower incomes).
But *most* people who used to use the itemized deduction due to high SALT have higher taxes even with the child tax credit, which if you are a dink, you don't get. But you would've gotten the personal exemption.
You don't really know till you have done your taxes. If you had high SALT but paid AMT last year (as AMT limits SALT), you will generally be no worse off this year or at least within spitting distance.
There is a zone between 150K-200K who would have been just short of AMT last year and now have you SALT limited.